What are the values of gdp-gnp and national saving

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A small island nation that lives in anarchy and does not have agovernment is endowed with indestructible coconut trees. Thesetrees live forever and no new trees can be planted. Every year $1million worth of coconuts fall of the trees and can be eatenlocally or exported to other countries. In past years the islandnation ran current account surpluses and financial accountdeficits, acquiring foreign bonds. It now owns $500,000 of foreignbonds. The interest rate on these bonds is 5% per year. Theresidents of the island nation consume $1,000,000 per year. Whatare the values of GDP, GNP, national saving, the current accountbalance, the financial account balance, and investment in thiscountry?

Reference no: EM13244066

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